Turbodyne responds to statements by Asensio

6 August 1998

Turbodyne Technologies Inc. today categorically denied any involvement in any "stock fraud", a charge asserted against the company by an analyst promoting short sales. Turbodyne yesterday responded to the analyst's attack on Turbodyne's technology. That response included a listing of 25 United States patents and patent applications to answer the analyst's assertion of a complete absence of patented Turbodyne technology.

"Turbodyne Systems has six US patents granted, and 19 US patent applications in process, three of which have already been allowed," said Walter Ware, Turbodyne's President & CEO.

In addition, Turbodyne has numerous foreign patents and patent applications. The patents and patent applications are based on new methods of providing additional air for internal combustion engines during periods of acceleration. This additional air is utilized for increasing power output, improving fuel economy and reducing harmful emissions.

The company's extensive intellectual property not only covers the construction of the Turbopac and Dynacharger products, but also encompasses a variety of new turbocharging and supercharging systems aimed at enhancing the performance of existing engines through retrofitting and enabling OEM manufacturers to obtain improved performance from new equipment. As the company moves from a primarily research and development operation to commercialization and production, it expects to address the market for retrofitting existing equipment first, and then to make inroads into the OEM field, which has been in progress for several years under joint development programs.